Murphy USA Inc (MUSA)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	17,937,500	1,014,800	21,046,200	15,511,600	9,821,400
Inventory	US$ in thousands	401,600	341,200	319,100	292,300	279,100
Inventory turnover		44.67	2.97	65.95	53.07	35.19

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $17,937,500K ÷ $401,600K
= 44.67

Murphy USA Inc's inventory turnover has shown significant fluctuations over the years based on the provided data. The ratio increased steadily from 35.19 in 2020 to 65.95 in 2022, indicating that the company was managing its inventory efficiently and selling through its stock at a faster rate. However, the sudden drop to 2.97 in 2023 raises concerns about inventory management practices during that period, as it indicates either overstocking or slow sales.

The subsequent recovery to 44.67 in 2024 suggests that the company made efforts to address the inventory turnover issue. Overall, Murphy USA Inc's inventory turnover performance demonstrates the importance of closely monitoring inventory levels and sales to maintain a healthy balance between holding enough stock to meet demand and avoiding unnecessary carrying costs.